Shares of Philippine Media Giant Shut by Government Surge 50% in Comeback
Shares of Philippine Media Giant Shut by Government Surges 50% in Comeback
(Bloomberg) -- Philippine media giant ABS-CBN Corp. rose by the 50% daily limit after announcing the return to free-to-air television of some of its entertainment shows three months since it was denied a congressional permit.
Shares closed at 13.50 pesos each on Wednesday in Manila trading, the highest since July 22, even as the index fell by 0.7%. It also rallied by 50% on Monday, then slumped 15% the next day. Shares of its parent company Lopez Holdings Corp. also rose by 21% on Wednesday.
ABS-CBN has stopped broadcast since May when the government ordered it to shut its free TV and radio stations after its franchise expired. The network -- often the target of President Rodrigo Duterte’s tirades -- said Tuesday that some of its shows and movies will be seen on Channel 11 through an agreement with Zoe Broadcasting Network Inc.
It will, however, take some time, for the media network’s earnings and share price to rebound to pre-shutdown levels, said Nicky Franco, head of research at Abacus Securities Corp. “The block time deal will probably give the company just a fraction of its old airtime, geographic reach and margins,” he said.
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